[March 31, 2014](Reuters) — New York state joined
New York City in suing package delivery company FedEx Corp for allegedly
violating state and federal laws by illegally delivering contraband
cigarettes to people's homes.

The City of New York had sued FedEx last December, accusing the
company of creating a "public nuisance" through its partnership with
Shinnecock Smoke Shop to ship untaxed cigarettes to homes.

An amended complaint filed on Sunday included the State of New York
Attorney General Eric Schneiderman among the plaintiffs, and sought
more than $239 million in damages and penalties.

The New York state alleged that FedEx knowingly shipped nearly
400,000 cartons of unstamped cigarettes to homes in the state,
depriving it of $15, $27.50 or $43.50 on each carton in tax revenue.

The New York city had earlier alleged that the company deprived it
of excise tax of $15 per carton.

"The claims advanced in the Amended Complaint by the NYAG are
substantively identical to the City's claims in the original
Complaint," Assistant Corporation Counsel Eric Proshansky, who
represents the New York City in the case, said in a letter on
Sunday.

"Accordingly, the proposed objections to the pleadings raised by FXG
(FedEx Ground Package) should still form the basis for discussion at
the April 9th pre-motion conference."

FedEx requested the court last week to dismiss or substantially
narrow New York City's complaint.